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Tufts University
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Abstract:
Earlier research concluded that the initial stages of climate change would bring
net benefits to global agriculture, thanks to carbon fertilization and longer growing
seasons in high-latitude regions. This conclusion has been challenged in at least three
respects. First, newer experimental studies have sharply reduced older estimates of
carbon fertilization effects. Second, the effect of temperature on many crops has been
found to involve thresholds, above which yields rapidly decline; the number of hours
above the threshold is typically more important than the average temperature. Third,
climate change will bring significant changes in precipitation; in a number of important
areas, decreases in precipitation may cause declines in agricultural production. Simple,
aggregated economic analyses of climate change have often omitted these crucial effects
of precipitation.
Adaptation to warmer and often drier conditions is necessary but not sufficient for
agriculture. Within a few decades, business-as-usual climate change would reach levels at
which adaptation is no longer possible. Emission reduction and climate stabilization are
essential to any long-run solution for global agriculture.
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Background: the foundations of inaction
Often, of course, policy decisions are not based on formal models or explicit
economic analysis. Yet even when politicians and voters decide that climate policies are
simply too expensive, they may be relying on implicit estimates of damages. Declaring
something to be too expensive is not solely a statement of objective fact; it is also a
judgment that a proposed expenditure is not particularly urgent. Protection against threats
of incalculable magnitude such as military defense of a nations borders, or airport
screening to keep terrorists off of planes is rarely described as too expensive.
1
Both authors are senior economists at Synapse Energy Economics, Cambridge, MA. This article is based
on research done while we were at the Stockholm Environment Institute (SEI). Corresponding author:
Frank Ackerman, frankackerman12@gmail.com.
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The conclusion that climate policy is too expensive thus implies that it is an
option we can do without, rather than a response to an existential threat to our way of life.
Can we muddle along without expensive climate initiatives, and go on living and eating
as before? Not for long, according to some of the new research on climate and
agriculture.
In the 1990s, it was common to project that the initial stages of climate change
would bring net benefits to global agriculture (e.g., Mendelsohn et al. 1994). As late as
2001, the U.S. Global Change Research Program still anticipated that U.S. agriculture
would experience yield increases due to climate change throughout this century (Reilly et
al. 2001).Warmer weather was expected to bring longer growing seasons in northern
areas, and plants everywhere were expected to benefit from carbon fertilization. Since
plants grow by absorbing carbon dioxide (CO2) from the air, higher CO2 concentrations
might act as a fertilizer, speeding the growth process.
2
World Bank data on agricultural value added as a share of GDP in 2008, http://data.worldbank.org.
3
In economic terms, the fact that food is a necessity means that it has a very low price elasticity of demand,
implying that it has a very large consumer surplus. If contributions to well-being are measured by consumer
surplus rather than shares of GDP, as economic theory suggests, then agriculture looms much larger in
importance.
4
For the damage estimates used in DICE, including a projection of virtually no net global losses in
agriculture from the first few degrees of warming, see Nordhaus and Boyer (2000); this earlier analysis is
still a principal source for damages estimates in the latest version of DICE (Nordhaus 2008; Nordhaus
2007). On the dated and problematical treatment of agricultural impacts in FUND, see Ackerman and
Munitz (2012); the 2010 release of FUND relies on agricultural research published in 1996 and earlier.
5
Using historical data from 1961-90, PESETA modeled yields at nine locations, as linear functions of
annual and monthly average temperatures (as well as precipitation). In three locations, there was a negative
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projected that temperature changes through the end of this century would cause yield
declines in Mediterranean and southern Atlantic Europe, and yield increases elsewhere
(Iglesias et al. 2011). For Europe as a whole, PESETA estimated little change in crop
yields for average European temperature increases up to 4.1C, with a 10 percent yield
decline at 5.4C, the highest temperature analyzed in the study (Ciscar et al. 2011).
Such estimates have fallen well behind the state of the art in the research
literature. There are three major areas in which recent results and models suggest a more
complex relationship between climate and agriculture: the revised understanding of
carbon fertilization; the threshold model of temperature effects on crop yields; and the
emerging analyses of climate and regional precipitation changes.
The best-known of the new areas of research is the empirical evidence that carbon
fertilization benefits are smaller than previously believed. Plants grow by photosynthesis,
a process that absorbs CO2 from the air and converts it into organic compounds such as
sugars. If the limiting factor in this process is the amount of CO2 available to the plant,
then an increase in the atmospheric concentration of CO2 could act as a fertilizer,
providing additional nutrients and allowing faster growth.
Almost all plants use one of two styles of photosynthesis.6 The majority of food
crops and other plants are C3 plants (so named because a crucial molecule contains three
carbon atoms), in which growth is limited by the availability of CO2, so that carbon
fertilization could be beneficial to them. In contrast, C4 plants have evolved a different
photosynthetic pathway that uses atmospheric CO2 more efficiently. C4 plants, including
maize, sugarcane, sorghum, and millet (as well as switchgrass, a potential biofuel
feedstock), do not benefit from increased CO2 concentrations except in drought
conditions (Leakey 2009).
coefficient on a summer months temperature as well as positive coefficients on springtime and/or annual
average temperatures perhaps a rough approximation of the threshold model discussed below (Iglesias et
al. 2011).
6
A third photosynthetic pathway exists in some plants subject to extreme water stress, such as cacti and
succulents; it is not important in agriculture.
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studies (Long et al. 2004).7 Another literature review reaches similar conclusions,
offering important lessons from FACE, one of which is that the [CO2] fertilization
effect in FACE studies on crop plants is less than expected (Leakey 2009).
While research on carbon fertilization has advanced in recent years, there are at
least three unanswered questions in this area that are important for economic analysis.
First, there is little information about the effects of very high CO2 concentrations; many
studies have only examined yields up to 550 ppm, and few have gone above 700 ppm.
Long-term projections of business-as-usual emissions scenarios, however, frequently
reach even higher concentrations. Does CO2 fertilization continue to raise yields
indefinitely, or does it reach an upper bound?
Second, most studies to date have focused on the leading grains and cotton; other
plants may have different responses to increases in CO2. For at least one important food
crop, the response is negative: Cassava (manioc), a dietary staple for 750 million people
in developing countries, shows sharply reduced yields at elevated CO2 levels, with tuber
mass reduced by an order of magnitude when CO2 concentrations rise from 360 ppm to
710 ppm (Gleadow et al. 2009; Ghini et al. 2011). This result appears to be based on the
unique biochemistry of cassava, and does not directly generalize to other plants. It is,
nonetheless, a cautionary tale about extrapolation from studies of a few plants to food
crops as a whole.
7
This article has been criticized by Tubiello et al. (2007); the original authors respond in Ainsworth et
al.(2008).
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world, will have drastic and disruptive effects. A recent study suggests that it may be
easier for people to perceive climate change as reflected in temperature extremes, such as
the marked increase in the frequency of temperatures more than three standard deviations
above the local summer norm for 1951-80 (Hansen et al. 2012).
An important new wave of research shows that crops, too, are often more
sensitive to temperature extremes than to averages. In many cases, yields rise gradually
up to a temperature threshold, then collapse rapidly as temperatures increase above the
threshold. This threshold model often fits the empirical data better than the earlier models
of temperature effects on yields.
It is obvious that most crops have an optimum temperature, at which their yields
per hectare are greater than at either higher or lower temperatures. A simple and widely
used model of this effect assumes that yields are a quadratic function of average
temperatures.8 The quadratic model, however, imposes symmetry and gradualism on the
temperature-yield relationship: yields rise smoothly on the way up to the optimum
temperature, and then decline at the same smooth rate as temperatures rise beyond the
optimum.
The threshold model has been widely used in the last few years. For instance,
temperature effects on maize, soybean, and cotton yields in the United States are strongly
asymmetric, with optimum temperatures of 29 - 32C and rapid drops in yields for
degree-days beyond the optimum. For maize, replacing 24 hours of the growing season at
29C with 24 hours at 40C would cause a 7 percent decline in yields (Schlenker and
Roberts 2009).
A very similar pattern was found in a study of temperature effects on maize yields
in Africa, with a threshold of 30C (Lobell et al. 2011). Under ordinary conditions, the
effects on yields of temperatures above the threshold were similar to those found in the
United States; under drought conditions, yields declined even faster with temperature
increases. Limited data on wheat in northern India also suggest that temperature increases
above 34C are more harmful than similar increases at lower levels (Lobell et al. 2012).
8
That is, the equation for yields has both temperature (with a positive coefficient) and temperature squared
(with a negative coefficient) on the right-hand side.
9
Degree-days are the product of the number of days and the number of degrees above a threshold. Relative
to a 32C threshold, one day at 35C and three days at 33C would each represent three degree-days.
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A third area of research on climate and agriculture has reached less definite global
conclusions, but it will be of increasing local importance. As the world warms,
precipitation patterns will change, with some areas becoming wetter, but some leading
agricultural areas becoming drier. These patterns are difficult to forecast; climate model
predictions are more uncertain for precipitation than for temperature, and downscaling
global models to yield regional projections is only beginning to be feasible. Yet recent
droughts in many parts of the world underscore the crucial role of changes in rainfall.
Even if total annual precipitation is unchanged, agriculture may be harmed by changes in
the seasonality or intensity of rainfall.
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GDAE Working Paper No. 13-01: Climate Impacts on Agriculture
In our study of climate change and water in the southwestern U.S., we found that
climate change is worsening the already unsustainable pattern of water use in agriculture
(Ackerman and Stanton 2011).12 Nearly four-fifths of the regions water is used for
agriculture, often to grow surprisingly water-intensive, low-value crops; a tangled system
of legal restrictions and entitlements prevents operation of a market in water. If there
were a market for water in the Southwest, municipal water systems and power plants
10
End-of-century (2081-2100) precipitation under A1B relative to 1981-2000.
11
Lu (2009) notes that there is significant uncertainty regarding future Sahel drying, because it is
influenced by 1) sea-surface temperature changes over all the worlds oceans; and 2) the radiative effects of
greenhouse gas forcing on increased land warming, which can lead to monsoon-like conditions.
12
We studied a five-state region: California, Nevada, Utah, Arizona and New Mexico. California accounts
for most of the population, agriculture, and water use of the region.
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GDAE Working Paper No. 13-01: Climate Impacts on Agriculture
would easily outbid many agricultural users. Yet one-fifth of U.S. agricultural output
comes from this region, virtually all of it dependent on irrigation.
Water in the region comes primarily from the Colorado River and from
groundwater, neither of which can meet projected demand. The Colorado River is
infamously oversubscribed, and is the subject of frequent, contentious negotiations over
the allocation of its water. Climate change is projected to cause a decrease in
precipitation, runoff, and streamflow in the Colorado River basin, leading to frequent
water shortages and decreases in energy production (Christensen and Lettenmaier
2007)13.
Groundwater supplies are difficult to measure, and there are two very different
estimates of Californias groundwater reserves. Even assuming the higher estimate, the
states current patterns of water use are unsustainable, leading to massive shortfalls of
groundwater within a few decades.
The mountain regions of the western United States are experiencing reduced
snowpack, warmer winters, and stream flows coming earlier in the calendar year. Since
the mid-1980s, these trends have been outside the past range of natural variation, but
consistent with the expected effects of anthropogenic (human-caused) climate change
(Barnett et al. 2008). In the past, snowmelt gradually released the previous winters
precipitation, with significant flows in the summer when demand is highest. The climate-
related shift means that water arrives, in large volume, earlier in the year than it is needed
and the peak runoff may overflow existing reservoir capacity, leading some of it to flow
directly to the ocean without opportunity for human use (Barnett et al. 2005).
13
The Colorado River basin includes most of the four inland states in our study region, but only a small
part of California. Nonetheless, California is legally entitled to, and uses, a significant quantity of Colorado
River water.
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To those unfamiliar with the southwestern United States, this may sound like an
excursion into hydrology and water management rather than an analysis of agriculture.
No one who lives there could miss the connection: most of the regions water is used for
agriculture; virtually all of the regions agriculture is completely dependent on a reliable
flow of water for irrigation. As climate change presses down on the balance between
water supply and demand, it threatens to squeeze a crucial sector of the U.S. food supply.
This is a far cry from the optimism of earlier decades about what climate change will
mean for agriculture.
Conclusion
It should not be surprising that even a little climate change is bad for agriculture.
The standard models and intuition of economic theory emphasize options for substitution
in production less steel can be used in making cars, if it is replaced by aluminum or
plastic but agriculture is fundamentally different. It involves natural processes that
frequently require fixed proportions of nutrients, temperatures, precipitation, and other
conditions. Ecosystems dont make bargains with their suppliers, and dont generally
switch to making the same plants out of different inputs.
Around the world, agriculture has been optimized to local climate conditions
through decades of trial and error. The conditions needed to allow crops to flourish
include not only their preferred ranges of average temperature and precipitation, but also
more fine-grained details of timing and extreme values. This is true for temperatures, as
shown by the existence of thresholds and the sensitivity of yields to brief periods of
extreme temperatures beyond the thresholds. It is also true for precipitation, as shown by
the harm to Indian rice yields from less frequent but more intense monsoon rains, or by
the sensitivity of California agriculture to the delicate timing of snowmelt.
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Liz Stanton is a Research Fellow at the Global Development and Environment Institute
and a Senior Associate at Synapse Energy Economics, Inc. She holds a PhD in economics
from the University of Massachusetts-Amherst.
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16
The Global Development And Environment Institute
GDAE is a research institute at Tufts University dedicated to promoting a better understanding of how
societies can pursue their economic goals in an environmentally and socially sustainable manner. GDAE
pursues its mission through original research, policy work, publication projects, curriculum development,
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